BRITISH TRADE

Hokitika Guardian, 30 December 1930, Page 7

BRITISH TRADE

FORTNICHTLY REVIEW. STOCK EXCHANGE CLOSES IN CHEERFUL VEIN. fUnited Press Association.—By EJectrio Telegraph.—Copyright.] LONDON December 27. The Stock Exchange closed for the Christmas holidays in cheerful vein the markets having received an pected fillip in the reduction of the New York re-discount rate to 2 per cent., which is the lowest on record. it is generally believed that the reduction has been made with the idea of assisting American conditions, and checking the decline in stocks, which recently had been seriously affected by bank failures. The reduction had an immediate effect on the Stock Exchange, all British funds, advancing sharply and the movement spreading to many other sections. Unfortunately the Australian Governments did not participate their tendency being downward. Other Australian securitis also show, weakness, which is not surprising in view of the decreased profits. An analysis of the balance-sheets of eight leading Austra lian companies shows that the net profits in 1930 were £1,191,843, compared with £2,053,858 last year, a decrease of almost 42 pel' cent. TRADE OUTLOOK, A review of the state of trade, In the “Economist,” onct again in far from cheerful reading. The reviewer says: “The faint promise of greater stability, held out by some of Die October and Novtmber trade statistics once more ended in disappointment. Wholesale prices, after a period of six or seven weeks of relatively greater stability, began to fall with renewed precipitancy at the end of November. It seems highly probably that New Year’s Day will coincide with a return of the ‘Economist’ index number to the pre-war level. Unemployment returns lately have continued to grow in contradistinction to the normal preChristmas tendency. The last available weekly figures show 2,306,962 unemployed. Overseas trade, which in October showed signs of a little improvement, receded again the following month. Here, too, there is no sign - that the general trend ,of the curve has ceased to be downwards.” TIN PRODUCTION.

After this dismal foreboding it-is pleasant to read in the “Financial Times” that a definitely brighter prospect opens out before the tin industry The Producers’ Association announces that 90 per cent of the world’s output has bound itself to a definite agreement, under which each country’s output will be restricted to a Specified percentage. DAIRY PRODUCE.

The butter market had quite a good little spurt of activity during the three business days of this week, and prices firmed by Is to 2s all round. One factor contributing to the improvement was the unfortunate loss of the steamer Überon, as she was carrying over three thousand cases of Finnish butter, and absence of this from the northern markets had a hardening effect. The consumptive demand throughout tne country remains good. The Empire Marketing Board’s report says that stored stocks, which six months ago amounted to nearly 1,200,000 boxes, have now been reduced to 276,000 which is less by approximately 91,000 boxes than the stocks of a year ago.

Importers are gratified at the success of their propaganda function, the reception of the butter fleet. It received much publicity in the newspapers, and picture theatres showed the films all over the country for several days, so that millions of people must have learned that Australian and New Zealand butter was obtainable here. This should certainly stimulate the demand. EGO MARKET. The Australian egg season is approaching a close, the last shipment being due about three weeks hence. The season has been a record one so far as quantity is concerned, but, unfortunately. seems likely to furnish an oth°r record in respect of low prices. Owing to heavy supplies from all sources vulues steadily declined, apart from a short-lived advance due to delayed deliveries, and to-day’s prices of 12s to 14s may not be obtainable till the last arrivals are cleared. European production is large owing to the prevalence of mild weather conditions on the Continent and in Britain.